Old National Bancorp · NASDAQ:ONB
Old National Bancorp — Sterne Agee Financial Institutions Investor Conference 2012
34 slides from Old National Bancorp's conference presentation, Feb 13, 2012
Slide 1: Old National Bancorp - Sterne Agee Financial Institutions Investor Conference
Filed by Old National Bancorp Pursuant to Rule 425 under the Securities Act of 1933 Subject Company: Indiana Community Bancorp Commission File No.: 000-18847 Old National Bancorp Sterne Agee Financial Institutions Investor Conference February 13, 2012
Slide 2: Presenters: Bob Jones and Jim Ryan
Bob Jones President and CEO Jim Ryan Executive Vice President and Director of Corporate Development
Slide 3: Additional Information for Shareholders
Additional Information for Shareholders In connection with the proposed merger, Old National Bancorp will file with the Securities and Exchange Commission a Registration Statement on Form S-4 that will include a Proxy Statement of Indiana Community Bancorp and a Prospectus of Old National Bancorp, a
Slide 4: Forward-Looking Statement
Forward-Looking Statement This presentation contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, descriptions of Old National's financial condition, results of operations, asset and c
Slide 5: Non-GAAP Financial Measures
Non-GAAP Financial Measures These slides contain non-GAAP financial measures. For purposes of Regulation G, a non-GAAP financial measure is a numerical measure of the registrant's historical or future financial performance, financial position or cash flows that excludes amounts, or is subject to adj
Slide 6: Old National Bancorp
Old National Bancorp (NYSE: ONB) $8.6 billion in total assets at Dec. 31, 2011 Largest financial services holding company headquartered in Indiana Operates one of the largest independent insurance agencies headquartered in Indiana 183 financial centers1 throughout Indiana, Western Kentucky and South
Slide 7: Strong 4Q11 Earnings Performance
Strong 4Q11 Earnings Performance Net income of $22.2 million, or $.23 per share Results include $5.2 million in acquisition costs $5.7 million, or $.07 per share, in 4Q10 Revenues, net of securities gains, increased 32.9% over 4Q10 Capital and liquidity remain strong Credit quality well controlled
Slide 8: Strong Full-Year 2011 Earnings Performance
Strong Full-Year 2011 Earnings Performance Net income of $72.5 million, or $.76 per share $38.2 million, or $.44 per share, in 2010 Earnings driven by Reduced credit costs Benefits of Integra and Monroe acquisitions Continued focus on reducing noninterest expenses
Slide 9: Consistent Improvement
Consistent Improvement 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 Pre-Tax, Pre-Provision Income, Net of Securities Gains and Merger and Integration Expenses 4 18 17 16.8 9.2 26.6 27.8 28.6 34.4 1Non-GAAP financial measures management believes is useful in evaluating the financial results of the Co
Slide 10: Questions you might be asking
Old National Bancorp (NYSE: ONB) Questions you might be asking Why Indiana Community Bancorp? What is Old National doing to grow net income in this slow growth, low interest rate environment? What is Old National's capital strategy? What is Old National's perspective on credit?
Slide 11: Questions you might be asking: Why Indiana Community Bancorp?
Questions you might be asking Why Indiana Community Bancorp?
Slide 12: Why Indiana Community Bancorp?
Why Indiana Community Bancorp? Strong strategic and cultural fit Advances objective of being Indiana's bank Provides entry into attractive I-65 corridor markets Columbus, Indiana - one of the strongest markets in the state Lower unemployment and higher HH income than Indiana and national averages Sa
Slide 13: Why Indiana Community Bancorp? Evansville and I-65 corridor
Evansville Strategic fill-in of attractive I-65 corridor in South Eastern Indiana Area is home to Cummins Inc. and Honda Manufacturing of Indiana Old National Bancorp Indiana Community Bancorp Why Indiana Community Bancorp? Headquartered in Columbus, Indiana NASDAQ: INCB
Slide 14: Questions you might be asking: growing net income
Questions you might be asking What is Old National doing to grow net income in this slow growth, low interest rate environment?
Slide 15: Slow Growth, Low Rate Environment
Slow Growth, Low Rate Environment Adapting and reshaping our business to grow revenue Capitalizing on M&A opportunities Making tough decisions Reducing noninterest expense Reducing investment portfolio and wholesale funding
Slide 16: But what about organic Revenue Growth?
But what about organic Revenue Growth? Entire company focused on important client acquisition from competitors - committed to taking market share Strategic cross-selling - marketing insurance and wealth management products to commercial relationships Streamlining processes to make it simpler, easier
Slide 17: Consistent Improvement
Consistent Improvement 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 Noninterest expense, less merger and integration costs 90.8 77.1 77.9 76.1 83.3 76.4 77.6 88.4 88.5 Total Revenues 91.6 98.1 98.1 96.1 96.2 104.2 105.9 119.9 125.7 1Non-GAAP financial measures management believes is useful in evalua
Slide 18: Questions you might be asking: capital strategy
Questions you might be asking What is Old National's capital strategy?
Slide 19: Capital Management
Capital Management 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 ONB 0.1244 0.1304 0.1398 0.1458 0.145 0.1408 0.1482 0.1342 0.1446 Peer Group Average 0.0989 0.11 0.1133 0.1158 0.1144 0.1169 0.1179 0.1194 ONB Guideline 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 Capital levels remain strong following
Slide 20: Questions you might be asking: perspective on credit
Questions you might be asking What is Old National's perspective on credit?
Slide 21: Credit Comments
Credit Comments Good quarter in terms of reduction in criticized / classified Generally, the environment seems to be less pessimistic Good share of our borrowers have diminished balance sheets and weaker cash flow as a result of the prolonged downturn Timing of a recovery is key The longer the recov
Slide 22: Credit Quality - Provision and Net Charge-Offs
1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 Provision Expense 21.9 5.7 6.8 17 17.3 12 12.2 21.8 9.3 8 6.4 7.1 3.3 3.2 0 0.1 Quarterly Net Charge-Offs 6.1 15.9 5.5 13.4 12.6 13.6 12.7 21.8 6.7 8.2 6.1 6.9 2.9 5.8 4.9 8.2 2008 2009 2010 $40.8 $60.8 $28.0 $51.5 > $63
Slide 23: Credit Quality - ALLL and Mark Summary
Credit Quality - ALLL and Mark Summary Credit Quality - ALLL and Mark Summary $ in millions 1 Management believes this reconciliation to be useful to demonstrate that the day one fair value mark considers credit risk and should be included as part of total coverage
Slide 24: How is ONB handling the Integra loan portfolio?
How is ONB handling the Integra loan portfolio? Separate division created to handle Reporting and accounting Loss share agreement Special assets Performing loans
Slide 25: Thank You - Q&A
Ml OLD NATIONAL BANCORP” NYSE: ONB ‘oldnational.com Thank You Q&A
Slide 26: Appendix
Old National Bancorp Appendix
Slide 27: Pre-Tax, Pre-Provision Income
Pre-Tax, Pre-Provision Income1 Pre-Tax, Pre-Provision Income1 1Non-GAAP financial measures management believes is useful in evaluating the financial results of the Company 20.3% 273.9% 30.7% 4.8%
Slide 28: M&A Strategy
M & A Strategy Must enhance Old National's mission of being a true "community bank" Must align strategically and culturally Must meet/exceed financial targets Must pass rigorous due diligence process Focus on in-market community banks where significant cost saves can be achieved
Slide 29: Non-GAAP Reconciliations
Non-GAAP Reconciliations Non-GAAP Reconciliations
Slide 30: Non-GAAP Reconciliations
Non-GAAP Reconciliations Non-GAAP Reconciliations
Slide 31: Credit Quality - Excluding Covered Loans
Credit Quality - Excluding Covered Loans 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 ONB 0.0084 0.0073 0.0082 0.0094 0.0089 0.0055 0.0076 0.0076 0.0069 0.0058 0.0057 0.0062 0.0078 Peer Group Average 0.013 0.0142 0.0129 0.0144 0.0166 0.0158 0.0173 0.0164 0.016 0.0157 0.0144 0.013
Slide 32: Credit Quality - Excluding Covered Loans
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 ONB Consolidated 0.9273 0.9477 0.9527 0.9448 0.5366 0.547 0.486 0.4615 ONB Excluding Monroe 0.84 0.83 0.68 0.65 Peer Group data per SNL Financial See Appendix for definition of Peer Group Credit Quality - Excluding Covered Loans 1 Does not reflect impact of $3
Slide 33: ONB's Peer Group
ONB's Peer Group Like-size, publicly-traded financial services companies, generally in the Midwest, serving comparable demographics with comparable services as ONB comparable demographics with comparable services as ONB comparable demographics with comparable services as ONB
Slide 34: Investor Contact
Investor Contact Additional information can be found on the Investor Relations web pages at www.oldnational.com Investor Inquiries: Lynell J. Walton, CPA SVP - Director of Investor Relations 812-464-1366 lynell.walton@oldnational.com
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